New list, same problems

New list, same problems

The latest Global Competitiveness Index (GCI) released by the World Economic Forum, which saw Thailand's ranking drop by two notches, is caused by two key issues that have hindered the country's development for a long time. These issues need to be addressed now.

It did not come as a surprise to see Thailand's ranking drop from 38th place last year to the 40th spot this year. But nonetheless, the government defended the drop in ranking, saying that although Thailand slipped by two, the country actually scored higher compared to last year -- 68.1, instead of 66, out of 100.

The government needs to be more worried, especially given the leap made by Vietnam on the GCI, and Singapore's take-over of the top spot from the United States. This year, Vietnam -- Thailand's immediate neighbour and key competitor in many areas, which range from sport and trade to foreign investments -- jumped 10 spots to come in at 67th on the list.

Even though its position is still below Thailand, Vietnam has made substantial progress in a short period of time. In fact, its ranking is the most improved among the 141 countries and/or other economies assessed.

Thailand's scores across several categories are not bad. The country scored 90 out of 100 for macroeconomic stability -- up to 43rd from 48th place last year. It scored 90 out of 100 too, on its ability to control inflation rates. For health, Thailand scored 89 out of 100, thanks to the Universal Healthcare Scheme.

That said, several areas were identified as needing immediate attention, including human capital, transparency, and research and development (R&D).

Education is critical for human capital. Thailand's score for critical thinking in its education sector is only 37, far below Finland which topped the list with a score of 76.4. The skillset of Thai graduates was only given a score of 49.7, a drop from 52.3 last year. Contrast this to Switzerland, which scored 81.4 for the category.

In terms of R&D, Thailand came in at 56th place, scoring only 33.6 this year. Meanwhile, Japan scored 100, thus earning the top rank.

These scores show the challenges that need to be addressed to develop Thailand further. Given its ageing population, Thailand's workforce needs to be more competitive. This means substantial investments are urgently needed to develop its human capital.

Furthermore, poor governance, a lack of transparency and corruption continue to hinder any chances of improving the country's ranking.

The list also gave Thai public institutions which deal with security, property rights, social capital, checks-and-balances and public sector performance monitoring a score of 55.1 -- down from 54.8 last year, which equates to a drop from 60th to 67th in that category. The country also received a poor score at 36 out of 100 for corruption.

These issues are not new. Even though huge budgets have been allocated to various agencies to tackle these problems, Thailand has not seen progress in these areas. Promises of education reform have been made by every government, but no meaningful change has ever materialised.

The Eastern Economic Corridor (EEC), the country's new economic locomotive, could be derailed if no effort is made to improve Thailand's human capital.

Given that the EEC is a special economic zone developed under a number of special laws, the government should use it as a prototype for educational development for producing a skilled workforce for the fast-changing economic environment. If successful, it can be expanded to a larger scale across the country.

Editorial

Bangkok Post editorial column

These editorials represent Bangkok Post thoughts about current issues and situations.

Email : anchaleek@bangkokpost.co.th

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